TitleCity Debt and Financial Administration Policies - For the purpose of formally amending and approving the debt and financial administration policies for the City of Annapolis.BodyCITY COUNCIL OF THECity of Annapolis

Resolution 31-18

Introduced by: Mayor Buckley

A RESOLUTION concerning

City Debt and Financial Administration Policies

FOR the purpose of formally amending and approving debt and financial administration policies for the City of Annapolis.

WHEREAS, on, April 27, 2015 the City Council adopted Resolution 9-15 for the purpose of formally approving debt and financial administration policies for the City of Annapolis; and

WHEREAS, Resolution 9-15 requires a review of the City's debt and financial administration policies every four years at the seating of a new City Council.

WHEREAS, the City Council hereby seeks to amend and approve said debt and financial administration policies.

NOW THEREFORE:

BE IT RESOLVED BY THE ANNAPOLIS CITY COUNCIL that the City's debt and financial administration policies shall be amended as follows:

DEBT ISSUANCE POLICIES:

1. The City shall not use long-term borrowing or bond anticipation notes to finance current operations or routine maintenance.

2. Capital projects financed through the issuance of bonds and capital lease purchases shall not be financed for longer than the expected useful life of the improvements.

3. The City shall not issue tax or revenue anticipation notes to fund governmental operations.

4. The City may issue bond anticipation notes (BANs) for capital improvements. All BANs shall be paid off within twothree years of issuance and may be refinanced with long-term debt.

5. To reduce reliance on long-term debt for recurring capital projects, the City shall strive to increase pay-as-you-go funding until recurring capital projects are fully funded with without debt. Examples of recurring capital projects are road resurfacing, sidewalk repairs, and capital facility improvements.